Sunday, November 29, 2020

Tag: Utter Insanity

Utter Insanity…

by Dave Kranzler, Investment Research Dynamics:

That’s the only way to describe this stock market. It won’t end well for the hedge funds whose algos are chasing price momentum nor for the retail daytraders playing the game of “greater fool.” Apparently CSCO and WMT’s “beat” triggered a multi-hundred point spike in the Dow on Thursday. Funny thing about that. CSCO’s one-cent “beat” has been routine since the late 1990’s.

Walmart also “beat.” But for Walmart, the numbers below the headline sucked. The 1.1% revenue growth was well below 1% if you strip out gasoline price inflation from Sam’s Club numbers. Speaking of Sam’s, membership revenue was down 7.9% (these are FY Q1 vs Q1 last year). Operating income was down 4.1%. The “beat” was manufactured by one-time “other gain” that was not defined in the 8-K. This enabled WMT to generate the headline “beat.” Cash flow provided by operations dropped from $5.1 billion last year to $3.5 billion this year – not good. Despite the deteriorating financial fundamentals, the stock market added over $7 billion to WMT’s market cap.

Utter Insanity

by Karl Denninger, Market Ticker:

The left’s fulminating over Brett Kavanaugh is nothing short of insane — and points out that no good deed goes unpunished either.

Let’s remember a few things — Bill Clinton and especially Hillary are not sitting in a federal prison right now, in all probability, due to Brett Kavanaugh.

It’s been mentioned, of course, that Kavanaugh was part of the Starr investigation into the Clintons.  But who remembers Foggy Bottom and Vince Foster?